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I am Lyosha [343]
3 years ago
11

Tracey decides to lease a car for two years. She puts $0 money down and pays $209.15 per month. At the end of the lease, Tracey

can buy the car for $11 000. The selling price of the car today is $13 500. What is the total cost of the car if Tracey buys it at the end of the lease?
Business
1 answer:
Yanka [14]3 years ago
6 0

Answer:

$16,019.6

Explanation:

The amount of money Tracey puts down for the car = $0

The amount Tracey pays each month for the lease the car = $209.15

The number of years Tracey leases the car = 2 years

The amount at which Tracey can buy the car at the end of the lease, Pp = $11,000

The selling price of the car today = $13,500

The total amount Tracey pays while leasing the car for two years, L = $209.15/month × 2 years × 12 months/year = $5,019.6

The total cost of the car if Tracey buys it at the end of the lease, C = Pp + L

∴ C = $11,000 + $5,019.6 = $16,019.6

The total cost of the car if Tracey buys it at the end of the lease, C = $16,019.6.

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Wendell’s Donut Shoppe is investigating the purchase of a new $47,300 donut-making machine. The new machine would permit the com
UNO [17]

Answer:

COnsider the following calculations

Explanation:

1.  $

Annual Savings in Part-time help 6300

Added Contribution Margin from expanded sales 2600x1.50 3900

Annual Cash Inflows 10200

2.

NPV @ 5%

= Present Value of Cash inflows - Present Value of Cash outlfows

= [10200x 5.076] - 47300

= $4475

NPV @ 10%

= Present Value of Cash inflows - Present Value of Cash outlfows

= [10200x4.355] - 47300

= -$2779

Internal Rate of Return = Lower Rate + [Lower rate NPV/ (Lower rate NPV - Higher rate NPV] x Difference in rates

= 5 + [4475 / (4475+2779)] x 5

= 8%

3. NPV @ 5%

= Present Value of Cash inflows - Present Value of Cash outlfows

= [(10200x 4.355) + (12000x0.564)] - 47300

= $3889

NPV @ 15%

= [(10200x 3.784) + (12000x0.432)] - 47300

= -$3519

Internal Rate of Return = Lower Rate + [Lower rate NPV/ (Lower rate NPV - Higher rate NPV] x Difference in rates

= 10 + [3889 / (3889+3519)] x 5

= 13%

4 0
3 years ago
What is strategic prospecting and what is each stage in the strategic prospecting process?
elixir [45]

Answer:

A process designed to identify, qualify, and prioritize sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers

Explanation:

1) Generating Sales Leads

-Qualifying sales leads

2) Determining Sales Prospects

3) Prioritizing Sales Prospects

4) Preparing for Sales Dialogue

5) Remaining stages in the trust-based sales process

8 0
3 years ago
Katlin knew that her established customers liked her product much better than her competitor’s. She was planning to expand into
notsponge [240]

Answer:

Premium pricing

Explanation:

Premium pricing is the strategy of charging a high price to maintain a brand, a business, a product or a product status . In this, the sales volumes remain small, by keeping prices high. This allows carefully sustaining the value, status, prestige and brand value.

So according to the given scenario, Katlin wants to expand into new markets and planning to charge a higher price as compared to the competitors so it reflects the concept of premium pricing

6 0
3 years ago
The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $24,000,
Margaret [11]

Answer:

36.26%

Explanation:

Simple rate of return:

return/investment

<u>return:</u>

In this case, it will be the cost saving for the new machine: 161,000

<u>investment</u>

We will decrease the investment by the recovery from the old machine.

468,000 new machine - 24,000 salvage value of new   = 444,000

<u>Then, proceed to calculate:</u>

161,000/444,000 = 0.3612 = 36.26%

Consideration:

Is important to state that this rate, do not consider the time value of money, neither the cash flow of the project.

3 0
3 years ago
A study in your town found that 54 in 1,762 people have a post office box. what percent of the people in town have a post office
puteri [66]

Reports of study in my town have shown that out of the 1,762 people in the town, 54 have a post office box.

 

Therefore, the percent of the people in town have a post office box

= 54 / 1762 X 100

= 3.06%

4 0
3 years ago
Read 2 more answers
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